Document Content

CIRCULAR

Guiding technology appraisal for investment projects and technology transfer

Pursuant to the Government's Decree No. 54/2003/ND-CP of May 19, 2003, detailing the functions, tasks, powers and organizational structure of the Ministry of Science and Technology and the Government's Decree No. 28/2004/ND-CP of January 16, 2004, amending and supplementing a number of articles of Decree No. 54/2003/ND-CP;

Pursuant to the Government's Decree No. 11/2005/ND-CP of February 2, 2005, stipulating in detail technology transfer (amended);

Pursuant to the Government's Decree No. 87/2002/ND-CP of November 5, 2002, on provision and use of consultancy services;

Pursuant to the Prime Minister's Directive No. 08/2002/CT-TTg of February 25, 2002, on enhancing investment appraisal work;

The Ministry of Science and Technology hereby guides technology appraisal in investment and technology transfer as follows:

Part I

GENERAL PROVISIONS

I. Scope of regulation

This Circular guides in detail the appraisal of technologies in investment projects in Vietnam (including foreign direct investment and domestic investment) and the appraisal of technologies transferred under contracts on the transfer of technology from abroad into Vietnam or contracts on domestic technology transfer.

II. Subjects of application

This Circular applies to organizations and individuals being investors of investment projects or parties to technology transfer contracts, and organizations and individuals of all economic sectors that provide technology appraisal services.

III. Interpretation of terms

In this Circular, the following terms are construed as follows:

1. Technology appraisal for investment projects means activities of inspection and evaluation aiming to determine the actual technological achievements of executed investment projects at the time of appraisal against the technological contents of the investment projects which have been licensed or decided by competent state management agencies.

2. Technology appraisal for technology transfer contracts means activities of inspection and evaluation aiming to determine the actual achievements of technologies transferred under technology transfer contracts at the time of appraisal against the contents of the contracts already registered with competent state management agencies.

Part II

CONTENTS OF TECHNOLOGY APPRAISAL

I. Technology appraisal for investment projects

1. Appraisal of machines, equipment and production chains

a/ To evaluate the conformity and uniformity of machines, equipment and production chains against the requirements stated in project dossiers.

b/ To evaluate the actual quality of machines, equipment and production chains against the criteria stated in project dossiers:

- Actual capacity versus designed capacity;

- Basic (particular) technological properties of machines and equipment which are necessary for the production of products up to quality requirements: processing precision, purity, etc.

- The cutting edge of production chains, the ratio of advanced and modern equipment;

- The degree of production mechanization and automation;

- The origin of equipment (manufacturing countries and manufacturing firms);

- The year of manufacture, the technical conditions of machines and equipment, use period and residual quality (for used equipment).

- Energy cost (or consumption rate) per product unit;

- Material cost (or consumption rate) per product unit;

- Safety and degree of environmental pollution.

The appraisal may be conducted while machines, equipment and production chains are in operating or non-operating mode (having been assembled in complete sets or still in knocked-down form).

On the basis of the practical conditions of each production branch or domain, suitable specific contents and criteria shall be selected for the appraisal of machines, equipment and production chains of such branch or domain.

2. Appraisal of documents, information and technical designs

a/ To evaluate the conformity and adequacy of documents, technical dossiers, technological information and technical design dossiers against the requirements of production and operation of machines and equipment.

b/ Information on safety and impacts on the health of technology users and the community as well as the surrounding environment.

c/ The level of satisfaction of information needs (computerization) in service of production and management.

3. Appraisal of production organization and management

a/ To identify whether or not enterprises are granted certificates of quality management systems under the standards of ISO 9000, HACCP, GPM, TQM, etc. in conformity with each type of production chain.

b/ The ratio of products up to registered quality standards (standard conformity products).

c/ The ratio of exported products to the total output, compared with the required export rate stated in investment decisions.

d/ The ratio of sold products to the total output.

e/ Productivity.

f/ The level of modernization in the enterprise management system (computerization in such stages as technology management, supplies, marketing, etc.)

g/ Competitiveness (in terms of quality, designs and prices) of products turned out by the technology.

h/ Labor and capital costs per product unit.

4. Appraisal of the qualifications of human resources

a/ The percentage (%) of qualified managers.

b/ Skills of workers directly engaged in production (workers of average level).

c/ The percentage (%) of trained cadres and workers capable of handling production technologies.

d/ The ratio of cadres and workers directly engaged in production to the total number of cadres and employees in the enterprise (%).

5. Conclusions on technology appraisal for investment projects

a/ On machines, equipment and production chains;

b/ On documents, information, and technical design;

c/ On production organization and management;

d/ On the qualifications of human resources.

II. Technology appraisal for technology transfer contracts

1. To evaluate the modernity of production technologies and equipment (for equipment, the appraisal shall comply with Clause 1, Section I, Part II of this Circular).

2. The quality of products turned out by the transferred technology as compared with the quality standards already agreed upon.

3. To evaluate the degree of completion of the technology transfer contents against the contents of the technology transfer contracts (both quantitatively and qualitatively):

a/ Technological know-how, information and technological processes, pre-design documents or technical designs, formulas, technical parameters, technological drawings or charts, computer software, etc.

b/ Solutions to production rationalization or technological renewal.

c/ Industrial property objects.

d/ Technology transfer assistance services: Specialists providing technical assistance and training.

4. To evaluate the quality and number of specialists, the quality of employees before and after training, and the results achieved after receiving technical support and training.

5. The actual time of provision of technical assistance and training as compared with the planned one.

6. To calculate expenses payable for technology transfer as compared with the charge level agreed upon and registered by involved parties.

7. Conclusions on the appraisal of the contents of technology transfer contracts

a/ On production technology and equipment.

b/ On product quality.

c/ On the degree of completion of technology transfer contents.

d/ On the results of technical assistance and training (in terms of quantity, quality and time).

e/ On actual technology transfer costs.

Part III

FORMS OF ORGANIZATION AND METHODS OF TECHNOLOGY APPRAISAL

I. Forms of organization of technology appraisal

Technology appraisal shall be conducted at the request of competent state management agencies or concerned organizations and individuals in order to clarify such specific matters as signs of violation of registered contents, complaints, disputes, violations of law on technology management and technology transfer, etc.

Technology appraisal shall be conducted by:

1. Technology appraisal organizations.

2. Technology appraisers.

II. Appraisal methods

1. Appraisal of the whole production chains: To appraise the whole lot of equipment or the whole equipment system (steel furnaces, ships, special-use vehicles, or machines, etc.)

2. Appraisal of samples: To be applied to appraise equipment and machines in large quantities. This method is often applied to production under sustainable conditions or to mass production.

III. Appraisal results

1. Qualitative appraisal: The conclusion of satisfaction or non-satisfaction shall be drawn from processing information in dossiers and documents.

2. Quantitative appraisal: Normally, results are specific norms such as power, productivity, fuel and material consumption norms, etc.

Part IV

TECHNOLOGY APPRAISAL ORGANIZATIONS AND TECHNOLOGY APPRAISERS

I. Requirements of technology appraisal organizations and technology appraisers

1. Technology appraisal organizations must fully meet the following conditions:

a/ Being scientific and technological enterprises or organizations having professional capacity and experience in the domain of appraisal, set up and operating according to the provisions of law;

b/ Having registered for provision of appraisal services;

c/ Having at least two technology appraisers who fully meet the conditions specified in Clause 2, this Section;

d/ Having head-offices and technical facilities for testing major norms as requested;

e/ Having technical appraisal procedures suitable to technologies to be appraised at the request of competent state management agencies or concerned organizations and individuals.

2. Technology appraisers must fully meet the following conditions:

a/ Having college, university or higher degree in professional majors relevant to the appraisal requirements and domains;

b/ Having worked in the domains of to-be-appraised technologies for at least five years and having been trained in appraisal skills.

c/ Having full civil act capacity;

d/ Not being disciplined for appraisal-related wrongdoings or examined for penal liability or having been convicted but not yet entitled to remission of criminal records.

II. Rights and obligations of technology appraisal organizations and technology appraisers

1. Rights of technology appraisal organizations and technology appraisers

a/ To enjoy autonomy and accountability for technology appraisal activities.

b/ To sign contracts on provision of technology appraisal service.

c/ To request users of technology appraisal service to provide information and documents necessary for appraisal activities.

d/ To make reports on technology appraisal results.

e/ To collect charges (remuneration) for technology appraisal activities.

2. Obligations of technology appraisal organizations and technology appraisers

a/ To ensure compliance of the appraisal with the request of the appraisal-requesting party.

b/ To conduct appraisal in an independent, objective, scientific and accurate manner.

c/ To keep secret the appraised technologies according to the provisions of law.

d/ To be answerable to the appraisal-requesting party and law for appraisal results.

III. Registration of technology appraisal activities

1. Decentralization of registration of technology appraisal activities

a/ Foreign-invested technology appraisal organizations and foreign technology appraisers shall register their operation with the Ministry of Science and Technology.

b/ Technology appraisal organizations without foreign capital and Vietnamese technology appraisers shall register their operation with the Science and Technology Services of provinces or centrally-run cities where they are headquartered or where they register their permanent residence.

2. Procedures for registration of technology appraisal activities

a/ Technology appraisal organizations or technology appraisers shall submit two sets of dossier of registration for technology appraisal activities (including one original set) to competent state management agencies and pay fees prescribed by the State.

b/ Within 30 working days after receiving valid and complete dossiers, competent state management agencies shall consider dossiers and grant operation certificates to technology appraisal organizations and technology appraisers. In case of refusal to grant certificates, competent state management agencies shall reply in writing, clearly stating the reasons therefor.

c/ Technology appraisal organizations and technology appraisers shall be responsible before law for the contents of their registration dossiers.

IV. Dossiers of registration for technology appraisal activities

1. For technology appraisal organizations

a/ The application for registration of technology appraisal activities.

b/ The establishment decision, business or investment license (for foreign-invested enterprises).

c/ Explanations on the organization's appraisal capability;

d/ The scientific CV of the technology appraisers who is the head of the organization.

e/ The list of the organization's technology appraisers.

f/ The list of the organization's main equipment, devices and material foundations.

g/ The address of the organization's head-office.

2. For technology appraisers

a/ The application for registration of technology appraisal activities.

b/ The scientific CV of the technology appraisers.

c/ The working place of the technology appraisers.

d/ Notarized copies of diplomas and certificates and other relevant papers of the technology appraisers.

Part V

APPRAISAL PROCEDURES, CONTENTS OF CONTRACTS ON TECHNOLOGY APPRAISAL SERVICES, AND REPORTS ON THE PERFORMANCE OF TECHNOLOGY APPRAISAL SERVICE CONTRACTS

I. Procedures for technology appraisal

1. Technology appraisal organizations and technology appraisers requested to conduct technology appraisal shall work out detailed appraisal plans and clearly determine the tasks and task performance schedules in contracts on provision of technology appraisal service to be signed with organizations or individuals requesting technology appraisal.

2. The period of provision of technology appraisal service shall be agreed upon by the parties on the basis of the contents and requirements of technology appraisal, but shall not exceed 30 days after the date of signing contracts on provision of technology appraisal service.

II. Principal contents of contracts on provision of technology appraisal service

1. Names and addresses of the organization or and individual providing technology appraisal service and the technology appraisal-requesting party.

2. Contents of technologies to be appraised.

3. Appraisal method, criteria and procedures.

4. Rights and obligations of involved parties.

5. The appraisal time and schedule.

6. Service charges (remuneration) and payment mode.

7. Responsibilities to pay damages if the appraisal results are wrong.

8. Method of settling disputes.

9. Principles and procedures for pre-acceptance tests and liquidation of the contract.

10. Other conditions as agreed upon (if any).

III. Report on the performance of contracts on provision of technology appraisal service

1. After completing the technology appraisal, technology appraisal organizations or technology appraisers shall make and send reports on technology appraisal results to competent state management agencies where they have registered their operation.

2. Reports on technology appraisal results shall have the following principal contents:

a/ Name and address of the organization or individual providing technology appraisal service.

b/ Name and address of the state management agency or organization or individual requesting technology appraisal.

c/ Contents of technology appraisal already conducted.

d/ Method of technology appraisal already applied.

e/ Time and place of the appraisal.

f/ The list of documents used in the process of technology appraisal.

g/ Conclusions on the appraised technology.

Part VI

ORGANIZATION OF IMPLEMENTATION

I. Organization of implementation

The Ministry of Science and Technology shall assist the Prime Minister in performing the uniform state management of technology appraisal nationwide; promulgate according to its competence or propose the Government to promulgate legal documents on technology appraisal, guide and inspect technology appraisal for investment projects and technology transfer contracts.

Technology appraisal organizations and technology appraisers that meet all conditions for technology appraisal specified in this Circular shall conduct technology appraisal at the request of competent state management agencies or concerned organizations and individuals and bear responsibility before law for their technology appraisal results.

Investors and parties to technology transfer contracts shall coordinate with, provide information and documents to, and create favorable conditions for, concerned state management agencies, technology appraisal organizations and technology appraisers in the process of performing technology appraisal tasks.

II. Reporting on and review of technology appraisal activities

On January 1 every year, provincial/municipal Science and Technology Services shall send to the Ministry of Science and Technology reports on the situation of technology appraisal in the preceding year within their management scope.

The Ministry of Science and Technology shall review the situation of technology appraisal nationwide for submission to the Prime Minister.

III. Complaints and denunciations

Organizations and individuals may lodge complaints about the refusal to register technology appraisal activities and technology appraisal results and denounce acts of breaking the law on technology appraisal according to the provisions of the Law on Complaints and Denunciations.

IV. Handling of violations in technology appraisal activities

The handling of administrative violations in the domain of technology appraisal shall comply with current provisions of Vietnamese law.

Part VII

IMPLEMENTATION PROVISIONS

This Circular shall take effect 15 days after its publication in "CONG BAO."

Any problems or difficulties arising in the course of implementation should be reported promptly to the Ministry of Science and Technology for study and settlement.